A bank bill with a face value of $200,000 was issued today and it matures in 90 days' time. If interest rates are 7% p.a. what amount of cash does the issuer receive today? a. $196,606.52 b. $160,439.56 c. $196,577.89 d. $189,421.02 e. $203,452.05

A bank bill with a face value of $200,000 was issued today and it matures in 90 days' time. If interest rates are 7% p.a. what amount of cash does the issuer receive today? a. $196,606.52 b. $160,439.56 c. $196,577.89 d. $189,421.02 e. $203,452.05

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14MC: Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit...

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Question

A bank bill with a face value of $200,000 was issued today and it matures in 90 days' time. If interest rates are 7% p.a. what amount of cash does the issuer receive today?

a. $196,606.52

b. $160,439.56

c. $196,577.89

d. $189,421.02

e. $203,452.05

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